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Shares in Card Factory has fallen 18 per cent last September after warning full year profits would be hit by margin pressures.

The latest profit warning came despite “solid” Christmas trading with sales up 4.3 per cent in December and sales for the 11 months were up 5.9 per cent.

However Christmas sales from its online personal gift division gettingpersonal.co.uk were “disappointing” and sales in the 11 months were “broadly flat”.

Like-for-like store sales were up 2.7 per cent in December and were up 0.4 per cent in the 11 months to 31 December.

However like-for-like sales growth was driven primarily by lower margin non-card categories, such as gifts and dressings, while card sales were “stable” year on year.

As a result, and “previously announced margin pressure being experienced by the group, the board has lowered its full-year earnings outlook.

Chief executive Karen Hubbard said: “As we have reported previously, the Group has faced significant cost pressures in the year; these, together with the further change in margin mix given the ongoing out-performance of lower-margin non-card categories, are reflected in our expected outturn.

"We anticipate that the combined impact of foreign exchange and wage inflation in FY19 will result in £7-8 million of additional costs; whilst we have plans to mitigate this impact as far as possible, we recognise that against this backdrop, any EBITDA growth for the year is likely to be limited."

Hubbard added: “Looking further ahead, cost headwinds should ease unless there is a further dramatic shift in sterling.”